The Public Utilities Commission of Sri Lanka (PUCSL) is set to deliver its final decision on the proposed electricity tariff revision within the week starting June 9. The announcement follows the conclusion of an extensive public consultation process that drew over 500 written and oral submissions from concerned citizens, industry stakeholders, and consumer groups.
PUCSL Director of Communications Jayanat Herat confirmed that all submissions have been reviewed and the Commission is now finalizing its recommendations. “The process of reviewing them was completed by the end of last week. Now the relevant recommendations are being prepared and they will be submitted to the Commission,” Herat stated.
The proposed revision comes at the request of the Ceylon Electricity Board (CEB), which is seeking an 18.3% increase in tariffs for the period from June to December 2025. The utility claims the hike is essential to cover rising operational costs and repay mounting debts, including what it refers to as “legacy debt” accumulated through years of underpricing and deferred payments. Despite the proposed increase, the CEB maintains that average electricity rates would remain about 5.4% lower than at the beginning of the year, due to a 20% tariff cut implemented in January that reduced average costs to approximately Rs. 24 per kilowatt-hour.
Defending the proposed hike, CEB Spokesperson Eng. Dhammike Wimalaratne noted that tariffs remained unchanged from 2014 to 2022, despite consistent rises in fuel prices, spare parts, and generation costs. He emphasized that the board had to rely on borrowing and payment deferrals to stay operational, which has significantly strained its financial position.
However, the proposal has not gone unchallenged. Electricity Consumers’ Association General Secretary Sanjeewa Dhammika argues that the CEB’s strong financial performance in recent years negates the need for a tariff hike. He pointed out that the board recorded a profit of Rs. 57 billion in 2023 and a further Rs. 144 billion in 2024, suggesting that tariffs could, in fact, be reduced by up to 20%.
As stakeholders await the PUCSL’s verdict, the debate continues over balancing financial sustainability with affordability for electricity consumers across the country.